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<p><font size="+1"><font face="Arial">Many thanks to John S. and
Diane. <br>
</font></font></p>
<p><font size="+1"><font face="Arial">John Wickham</font></font><br>
</p>
<div class="moz-cite-prefix">On 6/16/2020 9:35 AM, John J. Sullivan,
Esq. wrote:<br>
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<p class="MsoNormal">John:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">You describe the foreign tax as an
inheritance tax. If what you describe operates like the
various state level inheritance taxes here in America it is
not an estate tax (as in WA and at the federal level) imposed
upon the transfer from the estate to the beneficiary for which
the estate (and if improperly left unpaid the personal
representative) is responsible. It is a tax upon the
beneficiary’s receipt of the distribution from the estate.
Incidentally, my understanding of history here in WA is we
actually had an inheritance tax until about 1980 when a pick
up estate tax was passed by initiative. <br>
<br>
I would be stunned, shocked and amazed to find that the
foreign inheritance tax law imposes responsibility upon the
estate or personal representative or has jurisdiction to do so
if the estate has no contacts with the foreign country other
than the beneficiary. I would recommend you check with the IRS
website to see whether there is an estate tax treaty with the
beneficiary’s home country and if so whether it says anything
about that country’s inheritance tax. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Another thought. If the will simply leaves
the property or its proceeds outright to the foreign
beneficiary, perhaps the beneficiary might wish to consider
whether modifying the will through a TEDRA agreement to hold
the inheritance in a testamentary trust here, or offshore,
might remove the inheritance from the reach of the foreign
inheritance tax. I would advise the client of the need for tax
law advice by a licensed attorney in the foreign country as to
whether this would work.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">On the issue of apportioning the tax among
the beneficiaries, unless there is some very specific
provision in the will, I do not believe the estate or other
beneficiaries should bear any part of the inheritance tax
burden if it falls upon the recipient and not the estate as
transferor. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">John J. Sullivan<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div style="border:none;border-top:solid #E1E1E1
1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbapt-bounces@lists.wsbarppt.com"><wsbapt-bounces@lists.wsbarppt.com></a> <b>On Behalf Of
</b>Diane J. Kiepe<br>
<b>Sent:</b> Tuesday, June 16, 2020 8:09 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv
<a class="moz-txt-link-rfc2396E" href="mailto:wsbapt@lists.wsbarppt.com"><wsbapt@lists.wsbarppt.com></a><br>
<b>Subject:</b> Re: [WSBAPT] Foreign inheritance taxes<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Hi John,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Interesting
question and why tax provisions in Wills can become
crucial. I would start with the Will and, if it says, as
many Wills do, that taxes charged by reason of death of
decedent is paid from the residuary of estate I would say
yes.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">This is
simply my gut response but I seem to recall this topic from
days gone by in the discussions of drafting personalized tax
provisions for QTIP property and other unusual
circumstances.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Best to you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><i><span style="font-family:"Script
MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script
MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com"
moz-do-not-send="true">djkiepe@depdslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
</div>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1
1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> <a
href="mailto:wsbapt-bounces@lists.wsbarppt.com"
moz-do-not-send="true">wsbapt-bounces@lists.wsbarppt.com</a>
<<a href="mailto:wsbapt-bounces@lists.wsbarppt.com"
moz-do-not-send="true">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>John Wickham<br>
<b>Sent:</b> Monday, June 15, 2020 5:31 PM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com"
moz-do-not-send="true">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] Foreign inheritance taxes<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p><span style="font-size:13.5pt">Listmates:</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">Hypo: in a Washington probate,
the Will contains a specific bequest to a citizen of a
foreign country, who resides in that foreign country, of a
modest piece of Washington real property.</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">That foreign country will
assess a stiff inheritance tax when the citizen receives the
bequest, whether it is still real property or whether the PR
sells it and sends the net proceeds.</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">Does the estate bear any
responsibility to the foreign government for its tax on its
own citizen?</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">Thanks for your thoughts.</span><o:p></o:p></p>
<p><span style="font-size:13.5pt">John</span><o:p></o:p></p>
<pre>--<o:p></o:p></pre>
<pre>John D. Wickham<o:p></o:p></pre>
<pre>P.O. Box 893<o:p></o:p></pre>
<pre>Friday Harbor, WA 98250<o:p></o:p></pre>
<pre>360-378-7178<o:p></o:p></pre>
<pre>360-378-0849 Fax<o:p></o:p></pre>
<pre> <o:p></o:p></pre>
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